The Japanese Yen has made gains against the majority of its most traded peers as risk aversion dominated market sentiment on Monday.

Concerns over political instability in Europe and United States have dominated sentiment with investors turning to the safety of the Yen. Concerns over the ongoing impasse in the USA over the nation’s budget and debt ceiling is threatening a shutdown of the US federal government, if no deal can be made by midnight tonight up to 800,000 federal workers will be sent home. The impact on the world’s largest economy could also have a negative impact on the wider global economy.

“With the government shutdown coming into sight, what is happening is the market is risk aversion and the Yen is rising. Concerns that Congress would also fail to agree on raising the federal debt limit may accelerate risk aversion in the near-term” said Kengo Suzuki, chief currency strategist at Mizuho Securities Co.

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In Europe meanwhile the markets are spooked by the potential break down of the Italian government. Embattled Prime Minister Enrico Letta has called for a confidence vote to be held on October 2nd in a bid to end the infighting caused by supporters of disgraced former PM Silvio Berlusconi. As a result the Euro fell to a two-week low against the Yen.

Also weighing upon risk sentiment was the release of data out of China which showed that its Manufacturing Index for September was revised down from 51.2 to 50.2. The data suggests that the world’s second largest economy remains fragile.

Current Japanese Yen (JPY) Exchange Rates

The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.8925

The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 157.9842

The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.1550

The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 81.0365

The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.1790